Indore’s development stifled: Laadli Behna Scheme causes financial strain

Indore(K K Jha).The much-publicized Laadli Behna Scheme of the state government has sparked concerns over the ongoing development works in the city. The delay in releasing the octroi amount owed to the Indore Municipal Corporation (IMC) by the state government has led to financial constraints, hindering the progress of various development projects.

With the IMC grappling with a bank debt of Rs 1,500 crore and outstanding payments to contractors, several ongoing projects have been halted due to the lack of funds. Contractors have ceased work midway due to non-payment by the IMC, prompting frustration among citizens and corporators alike. “We are losing our credibility. Freebies like the Laadli Behna Scheme are diverting funds that could have been allocated to developmental works,” expressed a BJP corporator anonymously.

Despite resorting to bank overdrafts to meet last month’s salary obligations, many IMC employees are still awaiting their payments.

Addressing queries on the IMC’s financial status during the first meeting of the Mayor-in-Council held at the newly constructed auditorium of the Indore Municipal Corporation, Mayor Pushyamitra Bhargava highlighted the impact of the Laadli Behna Scheme on the city’s finances. He revealed a shortfall of Rs 142 crore in octroi compensation from 2023 to January 2024 due to the scheme’s implementation.

Mayor Bhargava transcended party lines by acknowledging that both the previous BJP and Kamal Nath’s Congress governments failed to provide the rightful funds to the IMC. He pointed out that the monthly allowance from the state government was reduced from Rs 45 crore to Rs 37 crore during the Kamal Nath regime.

The mayor emphasized his commitment to making the corporation self-reliant rather than solely relying on government funds. He mentioned initiatives such as securing 50 percent of the profit from the Hukamchand Mill Project, estimated at Rs 600–700 crore, and efforts to legalize tap connections and reform taxation. He also noted recent discussions with the current CM regarding granting town planning rights to the corporation, which would significantly improve its financial condition.

The mayor, however, assured that he would leave a substantial amount in the corporation’s account at the end of his tenure.